“You should immediately and comprehensively assess your company‘s global manufacturing operations to ensure that systems and processes, and ultimately, the products manufactured, conform to (US) FDA requirements,†US FDA said.
Sun Pharma sees remediation process at erstwhile Ranbaxy facilities as a "time consuming" process even as it aims to bring at least one of the plants to conform to current good manufacturing practice regulations (cGMP) in the current fiscal.
The share buyback offer comes at a time when the drug maker is facing heat from the US Food and Drug Administration (USFDA) for manufacturing norm violations at three of its plants.
On December 22, the USFDA made public the warning letter which states that inspection 483 mentioned 23 observations. Out of the 23 observations, 10 were related to the injectables facility, 4 were on the oral solids facility, 8 were related to quality control labs and 1 was on warehousing.
The three plants that were inspected were the Unit VI of Srikakulam Plant, Unit V at Telangana‘s Miryalaguda Taluk Plant and Unit VII at the Duvvada Plant in Visakhapatnam.
The significant violations included failure of the company to document production and analytical testing activities at the time they are performed, the USFDA said.
The consolidated profit in addition to revenue may also be adversely impacted due to certain expenses/ charges arising out of integration and remedial actions.
According to information on the US health regulator's website, 166 bottles of Captopril tablets of 50 mg strength are being recalled in the US. In case of Clarithromycin, the recall is for 50 bottles containing tablets of 500 mg strength.
Toansa is the fourth unit of the company that is banned and added to consent decree. With this, all of the company's India-based plants supplying to US are banned.
The manufacturing facilities, Jubilant HollisterStier, LLC (JHS) located at Spokane, Washington state, was inspected between April 15 and May 10, 2013, the US Food and Drug Administration (USFDA) said in a warning letter to company's CEO Marcelo A Morales.
In a statement, Ranbaxy said that its New Jersey-based Ohm Labs has received an Establishment Inspection Report (EIR) from the US drug regulator for its December 2012 inspection.
Dishman's Managing Director JR Vyas expects its key clients Abbott's contribution to grow by 50%. He further expects some more product orders coming in from Abbott in FY13.
Nectar Lifesciences has received European approval for its Cephalosporin APIs manufacturing facility at Derabassi in Punjab.
Chirag Talati, pharma analyst at Espirito Santo Securities tells CNBC-TV18 that since the company does not generate any sales from the facility, and approval of the 18 ANDAs (Abbreviated New Drug Application) were not expected until FY13, FY12 margins will remain intact.